FINRA/Columbia Conference on Corporate Debt Market Structure, Liquidity and Volatility
The structure, liquidity, and volatility of the corporate bond market is one of the more controversial and timely topics in financial markets today. The Conference on Corporate Debt Market Structure, Liquidity and Volatility was held on November 5th and 6th, 2015 to study these topics and drew leading academics, regulators, and industry participants to the Columbia University Club in midtown. The conference was jointly organized by the Financial Industry Regulatory Authority (FINRA), lead by its Chief Economist Jonathan Sokobin, the Program in the Law and Economics of Capital Markets, and the Columbia Business School Program for Financial Studies.
Dinner on Thursday, November 5, featured a candid and far-ranging discussion of contemporary financial market controversies with former Commissioner Daniel Gallagher of the Securities and Exchange Commission (SEC). The daylong event on Friday, November 6, featured presentations of scholarly work by leading academics, including Michael Goldstein of Babson College; Jens Dick-Nielsen of Copenhagen Business School; and Larry Harris of USC Marshall School of Business. Bloomberg’s Matt Levine led a provocative panel discussion on the current state of debt markets; Robert Cook of Cleary Gottlieb led a panel on the future of debt markets; Michael Fleming of the Federal Reserve Bank of New York discussed liquidity risk in corporate bonds; and Rick Ketchum, Chairman and CEO of FINRA interviewed the Hon. Elisse B. Walter, Former Chairman of the SEC.
While there was ample disagreement over the course of the day, industry participants, regulators, and academics also demonstrated that there is substantial room for common ground in analyzing important issues in the bond market and in crafting carefully calibrated regulatory solutions to those problems. For instance, there was broad agreement that it is important to study corporate markets and optimize regulation before a crisis event could occur and that technology would be important in driving future changes in market structure. It was also clear from the conference proceedings that there is an imminent need for further research in order to make more informed policy decisions addressing the bond markets.
PRESENTER: Jens Dick-Nielsen, Copenhagen Business School
PRESENTER: Larry Harris, USC Marshall School of Business
PRESENTER: Michael Fleming, Federal Reserve Bank of New York
THE CURRENT STATE OF DEBT SECURITIES MARKETS
MODERATOR: Matt Levine, Bloomberg
PANELISTS: Stuart Wexall, ICAP , Gary Goldsholle, U.S. Securities and Exchange Commission, Chester Spatt, Carnegie Mellon Tepper School of Business
Presentation Slides by Chester Spatt, Carnegie Mellon Tepper School of Business